Rumour Mill : Google To Gobble Social News Website Digg for USD 200 million

The latest red-hot rumour to appear in the blogosphere is about the impending acquisition of Digg by Google for about USD 200 million, that's roughly £100 million, several sources have confirmed.

The two companies have already signed a letter of intent which would then bring Digg as the Search Engine giant looks to integrate the social news website's technology within Google News service.

It is the third time this year, Google has been rumoured to be in discussions with Digg over a potential acquisition.

According to Techcrunch, Google's VP for Search products and User Experience, Marissa Mayer, has been the one leading the negotiations with Digg CEO Jay Adelson.

But until the ink is dry on the contract, nothing is certain as Microsoft could throw an offer on the table in a last minute attempt to prevent Google from capturing yet another high profile venture; Microsoft would certainly be at an advantage since it has a three year Ad contract with Digg.

The problem though is that Google is certainly not buying Digg for its technology - they've got enough smart people internally to replicate and enhance whatever technology they want; they're actually looking to capture Digg's community.

Already some within the Digg community are mulling the prospect of leaving the site altogether while others question the fact that Google seems to be buying companies it can't compete with... Just like another one from Redmond.

Acolytegerm for example says "The funny thing is, when Google fails at something, they just buy out the competition. eg, google video, it was pretty ***** and youtube pwned its *rs*. Therefore Google buys it out. Same thing with their user based voting and social networking that was built into it's search results, that failed pretty hard, so they buy out Digg. The only thing they have succeeded at was being a search engine. .... "

Last week, Techcrunch also revealed what looked to be another Google Search Experiment which incorporated many features pioneered by Digg like the ability to promote or demote links.